CELESTICA INC (CLS.CA) Stock Fundamental Analysis
TSX:CLS - Toronto Stock Exchange - CA15101Q2071 - Common Stock - Currency: CAD
Taking everything into account, CLS scores 6 out of 10 in our fundamental rating. CLS was compared to 13 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent on profitability, but there are some minor concerns on its financial health. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CLS a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS's Return On Assets of 7.24% is amongst the best of the industry. CLS outperforms 84.62% of its industry peers.
CLS has a better Return On Equity (27.13%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.26%, CLS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CLS is in line with the industry average of 12.74%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(17.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROIC | 17.26% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
With a decent Profit Margin value of 4.19%, CLS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
The Operating Margin of CLS (5.94%) is better than 84.62% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 10.76%, CLS is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
CLS has an Altman-Z score of 4.86. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS's Altman-Z score of 4.86 is fine compared to the rest of the industry. CLS outperforms 69.23% of its industry peers.
The Debt to FCF ratio of CLS is 3.08, which is a good value as it means it would take CLS, 3.08 years of fcf income to pay off all of its debts.
CLS's Debt to FCF ratio of 3.08 is fine compared to the rest of the industry. CLS outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CLS is somewhat dependend on debt financing.
CLS has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: CLS underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.12
WACC8.16%
2.3 Liquidity
CLS has a Current Ratio of 1.43. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CLS (1.43) is worse than 69.23% of its industry peers.
CLS has a Quick Ratio of 1.43. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS's Quick ratio of 0.85 is on the low side compared to the rest of the industry. CLS is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.06% over the past year.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 21.05%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
3.2 Future
The Earnings Per Share is expected to grow by 24.42% on average over the next years. This is a very strong growth
CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.65% yearly.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.61, the valuation of CLS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 76.92% of the companies listed in the same industry.
CLS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.45.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 27.53.
Based on the Price/Forward Earnings ratio, CLS is valued cheaper than 92.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CLS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 27.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLS is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.54 | ||
| EV/EBITDA | 25.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 22.07% in the coming years.
PEG (NY)1.59
PEG (5Y)0.78
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (7/4/2025, 7:00:00 PM)
217.78
-0.34 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap25.17B
Analysts82.5
Price Target137.9 (-36.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.3%
Min EPS beat(2)1.95%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)1.95%
Max EPS beat(4)10.78%
EPS beat(8)8
Avg EPS beat(8)10.16%
EPS beat(12)12
Avg EPS beat(12)8.62%
EPS beat(16)16
Avg EPS beat(16)9.76%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.37%
Revenue beat(8)7
Avg Revenue beat(8)2.81%
Revenue beat(12)11
Avg Revenue beat(12)3.1%
Revenue beat(16)13
Avg Revenue beat(16)2.59%
PT rev (1m)5.21%
PT rev (3m)-8.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 27.53 | ||
| P/S | 1.84 | ||
| P/FCF | 60.54 | ||
| P/OCF | 39.15 | ||
| P/B | 11.9 | ||
| P/tB | 20.16 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)5.79
EY2.66%
EPS(NY)7.91
Fwd EY3.63%
FCF(TTM)3.6
FCFY1.65%
OCF(TTM)5.56
OCFY2.55%
SpS118.6
BVpS18.31
TBVpS10.8
PEG (NY)1.59
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROCE | 21.53% | ||
| ROIC | 17.26% | ||
| ROICexc | 19.37% | ||
| ROICexgc | 26.09% | ||
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% | ||
| FCFM | 3.03% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexcg growth 3Y31.4%
ROICexcg growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score8
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 114.76% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 11.11 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 72.42% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.86 |
F-Score8
WACC8.16%
ROIC/WACC2.12
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
EBIT growth 1Y32.3%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y41.27%
OCF growth 3Y27.84%
OCF growth 5Y6.55%